LIL:CS:IP:2020-21 Date : 20.06.2020 BSE Limited Listing Compliance Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001 Company Code : 517206 The National Stock Exchange of India Limited Listing Compliance Department Exchange Plaza, C-1 Block G, Bandra Kurla Complex, Bandra (E), Mumbai-400051 Company Code: LUMAXIND Subject: Investor Presentation for the 4 th Quarter and Financial Year ended 31 March, 2020 Dear Sir/ Ma’am, Please find enclosed herewith the Investor Presentation of the Company for the 4 th Quarter and Financial Year ended on 31 st March, 2020. The same shall also be made available on the website of the Company www.lumaxworld.in/lumaxindustries. This is for your information and records. Thanking you, Yours faithfully, For LUMAX INDUSTRIES LIMITED PANKAJ MAHENDRU COMPANY SECRETARY M. NO. A 28161 Encl: As Stated above
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LIL:CS:IP:2020-21 Date : 20.06.2020
BSE Limited Listing Compliance Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001 Company Code : 517206
The National Stock Exchange of India Limited Listing Compliance Department Exchange Plaza, C-1 Block G, Bandra Kurla Complex, Bandra (E), Mumbai-400051 Company Code: LUMAXIND
Subject: Investor Presentation for the 4th Quarter and Financial Year ended 31 March, 2020
Dear Sir/ Ma’am,
Please find enclosed herewith the Investor Presentation of the Company for the 4th Quarter and Financial Year ended on 31st March, 2020.
The same shall also be made available on the website of the Company www.lumaxworld.in/lumaxindustries.
This is for your information and records.
Thanking you,
Yours faithfully,
For LUMAX INDUSTRIES LIMITED
PANKAJ MAHENDRU COMPANY SECRETARY M. NO. A 28161
Encl: As Stated above
Lumax Industries LimitedInvestor Presentation - June 2020
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Lumax IndustriesLimited (the “Company”), have been prepared solely for information purposes and do not constitute any offer,recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied onin connection with any contract or binding commitment whatsoever. No offering of securities of the Company will bemade except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considersreliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shallbe placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. ThisPresentation may not be all inclusive and may not contain all of the information that you may consider material. Anyliability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunityand business prospects that are individually and collectively forward-looking statements. Such forward-lookingstatements are not guarantees of future performance and are subject to known and unknown risks, uncertainties andassumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performanceof the Indian economy and of the economies of various international markets, the performance of the industry in Indiaand world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levelsof growth and expansion, technological implementation, changes and advancements, changes in revenue, income orcash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’sactual results, levels of activity, performance or achievements could differ materially and adversely from resultsexpressed in or implied by this Presentation. The Company assumes no obligation to update any forward-lookinginformation contained in this Presentation. Any forward-looking statements and projections made by third partiesincluded in this Presentation are not adopted by the Company and the Company is not responsible for such third partystatements and projections.
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Safe Harbor
3
DK Jain Group
Seven Decade StrongLeader in Automotive Lighting &
Gear Shifters
15 Entities in 8 States 30 Manufacturing Facilities
In partnership with SL Corporation, Korea, amultinational automotive player with presence inAsia-Pacific, Europe & US
70%
30%
Lamps Others
26
SL Lumax Limited
Four Wheeler Export
Tractor /FES
Two Wheeler Commercial Vehicle
… Servicing almost 90% of OE Customers in India … 27
Strong Customer Base …
The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
R&D Centre & Design Centre
R&D CentreGurugram
Pune
Design Centre
Taiwan… in Key Auto Belts of India
Bawal
Dharuhera
Gurugram
Sanand
Bengaluru
Chennai
SL Lumax Ltd
Chinchwad
Chakan
Haridwar
Pantnagar
28
… From Strategic Locations …
Manesar
29
State of Art Manufacturing Facilities
30
State of Art Manufacturing Facilities
31
State of Art Manufacturing Facilities
32
…In-house R&D & Validation Facility
33
…In-house Design Studio
Shareholding breakup
Over three decades of strong technical & financialcollaboration with Stanley Electric Company Ltd,Japan
A world leader in Vehicle Lighting & Illuminationproducts for Automobiles
The only Global Auto Lighting company tomanufacture LED worldwide
Stanley Electric Company Ltd
DK Jain Family37.50%
Stanley37.50%
Others25.00%
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Share Holding as of 31st March, 2020
Mr. Dhanesh Kumar Jain
Chairman Emeritus
Mr. Deepak Jain
Chairman & Managing Director
Mr. Anmol Jain
Jt. Managing Director
▪ He is 76 years of age & holds a MBA degree from Delhi university & has successfully completed President Management Program from Harvard Business School
▪ Over 50 years of experience in the automotive industry in management, operations & administrative roles
▪ He has held various industry positions
▪Past president of ACMA, President suppliers association –Toyota Kirloskar Motors, Chairman of Trade Fairs Committee ACMA, Co-chairman of Regional Committee on Membership of Northern Region CII, Past Chairman of CSR sub-committee of the Northern Region of CII
▪ He is 45 years of age & is a Business Graduate from Illinois Institute of Technology, USA with specialization in Operations Management & International Business
▪ He has undergone extensive training at Stanley Co. Limited, U.S.A. & Stanley Electric Co. Limited, Japan. He has over 21 years experience
▪ He was chairman of ACMA’s HR/IR & Skill Development Committee, past chairman of Sustainable Technology Development Committee of ACMA, past National Coordinator of Young Business Leader Forum of ACMA and past president of Supplier’s club, Honda Cars India Limited
▪ He is Member of Young President Organization and Entrepreneurs’ Organization. He also holds the position of President of ACMA & Vice President of Toyota Kirloskar Supplier’s Association
▪ He is 41 years of age & holds Bachelors in Business Administration in Finance & Supply Chain Management (Double major) from Michigan State University, U.S.A.
▪ He worked as a Management Trainee with GHSP, U.S.A. & subsequently, joined Lumax Group, in 2000 & has over 20 years of experience
▪ He has held various positions in Industry associations like He was the National Coordinator of ACMA- YBLF from 2014-16. He was also the Chairman CII Haryana State Council in 2012-13
▪ He is currently the President of Honda Cars India Supplier’s Club & MC member of Bajaj Auto Vendor Associations
Promoter Group
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▪ He is 53 years old & is a Mechanical Engineering from Tokoyo Denki University Japan
▪ He is Nominee Director of M/s Stanley Electric Co. Limited, Japan and possesses over 28 years of rich experience in the field of Car Electronics, Engineering, Sales of car electronic parts and Sales Planning Division
▪ He is with Lumax since 2017
Mr. Tadayoshi AokiSenior Executive Director
▪ He is 59 years old & is a graduate from Hosei university, japan
▪ He has over 25 years of rich experience in R&D of Electrical components & advanced Illumination systems for automotive equipment
▪ He also has about 10 years of experience in automotive electronics
▪ He joined Stanley, Japan in 1981
Mr. Toru TanabeNon-Executive Director
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Promoter Group
▪ He is 50 years old & is a graduate from graduate from Hamamatsu Commercial High School
▪ He has over 30 years of rich experience in Procurement, Planning, Audit and NPD
Mr. Kenjiro NakazonoExecutive Director
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Mr. Rajeev Kapoor Mr. M.C. Gupta Mr. Dhiraj Dhar Gupta Mr. Ratan Kapur Ms. Ritika ModiMr. A P Gandhi•He is 67 years old and
mechanical engineer (hons) from NIT, Kurukshetra•He was MD for Copart Inc.
and has served as independent director on the board of RICO industries, Co-Chair of Economic Committees SIAM, Served on board of ARAI, Pune and on board of Indo Italian chamber of Commerce•Listed on the power list of
2012, alongside Mr. Ratan Tata, Mr. Rahul Bajaj, Mr. Anand Mahindra etc.•Entrepreneurial by nature
and experience in excess of 40 years
•He is 81 years old and is MA in English Literature from Agra University
•He is a Retd. IAS officer & has served the Union & State Governments in various capacities including Deputy Secretary, Min of Finance-Dept. of economic Affairs, Advisor – UNIDO (United Nations Industrial Development Organisation)
•He is 69 years old and holds B.Com honours from SRCC, Delhi University
•He is an Industrialist; Director & Promoter of KSS Abhishek Auto Pvt Limited, having over 3 decades of experience in Auto Component manufacturing
•He is 62 years old & is a B.Com Graduate from Delhi University
•He is an Industrialist & possesses more than 32 years of experience in Auto Component Industry
•He is the Past President of ACMA & Chairman of Haryana State Council of CII
•She is 54 years old and has an industry experience of over 25 years in the travel and airline industry
•She is currently Regional President of UNIGLOBE Travel South Asia, heading the largest single brand travel franchise network in South Asia region
•He is 81 years old & is a mechanical engineer
•He has held top leadership positions in prestigious organisations having over 40 years of experience
•His last assignment was as President at Hyundai Motors India Limited. Prior to that he was Chief Executive –R&D at Escorts Limited & at Telco before that, holding various senior positions in the area of manufacturing operations
…Supported by Strong Independent Directors
Ms. Priyanka Sharma
Corporate Communication & CSR
Age: 51 Years
Experience: 25 Years
Mr. Atul Jain
Corporate Head - Materials
Age: 50 Years
Experience: 27 Years
Mr. Lalitentu Samanta
Corporate Head - HR
Age: 54 Years
Experience: 30+ Years
Mr. Shrutikant Rustagi
Chief Financial Officer
Age: 50 Years
Experience: 25 Years
Professional & Experienced Team
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Mr. Naval Khanna
Corporate Head – Taxation
Age: 63 years
Experience: 43 years
Mr. Sanjay Mehta
Group CFO
Age: 53 years
Experience: 29 Years
Mr. Vineet Sahni
CEO & Sr Executive Director
Age: 55 years
Experience: over 30 Years
Mr. Pankaj Mahendru
Company Secretary
Age: 33 Years
Experience: 9 Years
The Path Ahead
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• Tail lamps were introduced with Clear Lenses with adoption of Multi Color Molding technique for giving a Homogenous appearance to the tail lamp
2011-12
• New Styling adopted in Tail Lamps with introduction of Split Tail Lamp design
2013-mid of 2014
• All the new models to be introduced are with LED’s for having better Aesthetic Appearance and Signature Appearance
2017 onwards
• Almost all the new models launched were having presence of LED’s either for one of the functions or for Signature Lighting
2016
• Penetration of LED’s into Tail Lamps with introduction of one or more feature with LED.
• LED’s adopted for giving Signature shape in the Tail Lamps
End of 2014 - 2015
Split type Tail Lamp Tail Lamp with LED Signature and Tail function
All LED Tail Lamp 3D LED Tail lamp Adaptive rear Lighting
LED to drive the future growth
Rear Lamp – Technology Evolution
• Head Lamps with Halogen Bulbs with Clear PC Lens with Multi Focal Reflector (MFR) for Light Distribution were introduced in the passenger vehicle segment
• Indian OEM’s introduced Projector Lamps with Halogen Lamps and some features with LED like the DRL (Daytime Running Lights). But Projector Lamps were offered as an option in top variants of the vehicles and not as a standard feature
• Introduction of Projector Lamps with Halogen Bulbs for new vehicles launched in India by more number of OEM’s as standard feature
• In the later half of 2014 and start of 2015 more number of OEM’s shifted focus to introduction of LED’s for feature of DRL’s and / or signature Lighting
• Also in 2015 more number of Head Lamps were introduced with LED’s for DRL feature with usage of HID (High Intensity Discharge) Bulbs for Projector
• Almost all the models were introduced either with LED DRL feature or Projector Head Lamp (either with Halogen Bulb or HID Bulb) or with both LED DRL and Projector Head Lamp
• Headlamps with Signature DRL’s or Lighting become a styling feature and were introduced in the vehicles launched in 2016
• Later half of 2016 also witnessed the introduction of LED Projector Head Lamps thus leading to more penetration of Electronics and LED into Head Lamps
• Year 2017 witnessed the transition to manufacturing of Localized LED Head Lamp with Signature DRL and Position
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• The future models which are replacing the existing models are now either with Projector Head Lamp (Bulb) whose predecessor were with Halogen Bulbs and with Projector Head Lamp (with LED) whose predecessors were with Projector with Halogen Bulbs
2011-13 2014-15 2017-202016-17
Projector Head Lamp All LED Head LampHead Lamp with Bulb Head Lamp with bulb + Led DRL
Head Lamp with LED Projector and LED DRL
LED to drive the future growth
Head Lamp – Technology Evolution
The Market Scenario
Increased styling demands by OEMs to individualise &
differentiate
Influencing the cost of lighting cluster
Creating revenue opportunities for Tier I
suppliers
Creating The Advantage
Partnership with Stanley Electric -
Stanley is one of the Auto Lighting company globally to manufacture LEDs
Lumax is supplying to almost 90% of OE customers
Higher need for Localization of Engineering & Cost Reduction
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Strategically located Manufacturing Infrastructure
Consistent Investment in R&D
Backward integration with PCBMT (Surface Mounting Technology)
To gain from Bharat Stage VI
Leveraging on our Strengths for LED Market
Financials
Standalone Results
Reported EBITDA#Revenue
Cash PATPAT
Rs. Crores
1,255.2 1,270.9
1,649.41,851.5
1,601.6
FY18*FY16 FY17* FY20*FY19*
+6%
92.9106.8
143.0
178.7 167.4
FY16 FY18*FY17* FY19* FY20*
+16%
37.446.1
63.2
107.4
72.3
FY20*FY16 FY17* FY19^*FY18*
+18%
75.387.5
111.1
167.7
135.9
FY18*FY16 FY17* FY19^* FY20*
+16%
7.40% 10.45%+305 Bps
Margins
2.98% 4.51%+153 Bps
44* Numbers updated as per IND-AS
# Including other income
Strong Growth in Total Income with Healthy Margins
^Includes one-time gain on sale of asset of Rs. 36.20 Crores and the tax paid on the same was Rs. 7.20 Crores, in FY19
760 812973
1,047
1,214
FY18*FY16 FY17* FY19* FY20*
Standalone Results
Long Term LoanGross Block
Long Term Debt / EquityCapex
52.070.0
162.0
94.0
167.4
FY17*FY16 FY18* FY19* FY20*
0.21
0.05
0.02 0.01
0.14
FY19*FY18*FY17*FY16 FY20*
36.0
13.0
5.0 2.7
52.9
FY19*FY17*FY16 FY18* FY20*
45Rs. Crores * Numbers updated as per IND-AS
Expansion funded through Internal Accruals
Standalone Results
ROCE (%)ROE (%)
18.3 18.0
21.6 21.118.8
FY19*FY17*FY16 FY20*FY18*
25.6 26.0
32.0 32.0
24.0
FY20*FY18*FY17*FY16 FY19*
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Dividend (% of Face Value) EPS (in Rs.)
120145
230
350
235
FY19*^FY17*FY16 FY18* FY20*
40.049.3
67.7
114.9
77.3
FY19*FY16 FY20*FY17* FY18*
* Numbers updated as per IND-AS
Healthy Return Ratios
ROCE = EBIT / Capital Employed
Capital Employed = Networth + Long term debt including Current Maturity
^ Total Dividend includes special dividend of Rs. 10/share on account of income on sale of land and building in FY19
Operating profit before working capital changes 171.0 160.9
Changes in working capital -52.0 -23.9
Cash generated from operations 119.0 136.9
Direct taxes paid (net of refund) 15.7 32.9
Net Cash from Operating Activities 103.3 104.0
Net Cash from Investing Activities -193.8 -97.5
Net Cash from Financing Activities 96.5 -5.8
Net Change in cash and cash equivalents 5.9 0.8
Opening Cash Balance 2.0 1.2
Closing Cash Balance 7.9 2.0
Awards & Recognitions
Lumax Industries Limited, Dharuhera won the Gold Award in Excellence in Inclusive Growth -
A Make in India Drive - Very Large Category at the ACMA Technology Summit & Awards heldin November, 2019.
Awards & Recognition
Lumax Industries Limited, Dharuhera won the Bronze Award in Excellence in
Manufacturing - Very Large Category at the ACMA Technology Summit & Awards inNovember, 2019.
Awards & Recognition
Lumax Industries Limited, Chakan won the Silver Award in Excellence in New ProductDesign & Development at the ACMA Technology Summit & Awards in November, 2019.
Awards & Recognition
Lumax Industries Limited, Pantnagar won the Gold Award in Excellence in Supplier
Development - Very Large Category at the ACMA Technology Summit & Awards held inNovember, 2019.
Awards & Recognition
Won the prestigious Gold award for Top 100 best annual report for excellence within its industry for the past fiscal year.
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Awards & Recognition
Lumax Industries Limited bagged The Gold Award at ICQCC for the third year in a row in FY20.
Our plants at Haridwar, Bawal & Bengaluru have been accorded with this prestigious award.
Awards & Recognition
Lumax Industries Limited won the Overall Performance (Shield) Award from Maruti Suzuki India Limited in May, 2019.
Awards & Recognition
Lumax Industries bagged four prestigious awards from ACMA for Manufacturing Excellence, Excellence in Inclusive Growth, Excellence in Technology - Product Innovation and Excellence in Supplier Development in 2019.
Awards & Recognition
Lumax Industries Limited, Dharuhera bagged the Gold Award in Digitalisation Robotics andAutomation Category amongst 48 nominees at Low Cost Automation & Digitalisation Robotics andAutomation Competition organised by Confederation of Indian Industry in September, 2019 held atGurugram.
Awards & Recognition
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Award received from Maruti Suzuki India Ltd - May 2018
Awards & Recognition
For Tier 2 Upgradation For Overall Vendor Performance For Gujarat Localization
HMSI Awards for New Product Development
Awards & Recognition
SML Isuzu Award for Design and Development
Awards & Recognition
JIPM Award for Excellence in Consistent TPM Commitment Pantnagar Plant, 2019
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TPM Award
JIPM-TPM Excellence Award Bengaluru Plant, 2019
JIPM-TPM Excellence Award Pantnagar Plant, March 2014
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TPM Award
JIPM-TPM Excellence Award Bawal Plant, November 2017
HealthEducation
Towards its endeavour to give back to society, the group hastaken various initiatives towards Education of theunderprivileged. Four schools in the NCR region, close to itsfacilities have been adopted, starting with improving itsinfrastructure, to facilitating the annual fee so as to ensure aconducive environment for learning and continuity ineducation.
Also provide support towards maintaining good health of thecommunity around its facilities